Washington-(Mudassar Iqbal)-The International Monetary Fund (IMF) and World Bank annual meetings are set to convene in Washington, drawing over 10,000 finance officials, central bankers, and civil society representatives. The gathering comes amidst heightened uncertainty due to conflicts in the Middle East and Europe, China’s slowing economy, and the looming US presidential election.
Experts warn that a Republican victory in the November 5 election could significantly impact the global economy. Donald Trump’s potential win could lead to:
– Massive new US tariffs
– Increased borrowing
– Shift away from climate cooperation
“This election has huge implications on trade policy, the future of the dollar, and the next Federal Reserve chair,” said Josh Lipsky, former IMF official and head of the Atlantic Council’s GeoEconomics Center.
In contrast, a Democratic win under Vice President Kamala Harris is expected to continue the Biden administration’s multilateral cooperation on climate, tax, and debt relief.
US Treasury Secretary Janet Yellen, who spearheaded the Biden administration’s multilateral efforts, will likely attend her last IMF meeting. Yellen has stated she is “probably done” with public service after President Biden’s term ends in January.
Other key discussion topics include:
– Anti-China trade sentiment and industrial policy plans
– Biden administration’s tariff increases on Chinese products
– IMF’s updated global growth forecasts (to be released Tuesday)
– Debt distress and green energy transition
IMF Managing Director Kristalina Georgieva cautioned about a lackluster outlook, citing high debts and slow medium-term growth. “The world is headed for difficult times,” she said.
As global finance leaders gather, finding solutions to these pressing challenges will be paramount.
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